“Tiger king” aged … rat

The people who have met him may think I am jocking. Because businessman Le Van Dung has such a small, gentle looking that may be called “peaceful”. In leading a business of top rank in pharmaceutical sector – Vien Dong Pharmaceutical group, although the work is always overloaded, the staffs rarely see him, the President, get angry. But talking about the story of over one year ago, when Vien Dong Pharmaceutical was in full hardship due to the impact of economic crisis, we would find a hot blood stream and wise mind, strength and deciasivity behind that “peaceful” looking.

That is the time when the Company has just carried out a large scale recruitement to expand its distribution channels and prepare for Lili of France factory in Bac Ninh, the economic crisis came. Of course, Vien Dong Pharmaceutical did not have a pair of “magic sticks” to cover the Company from the international storm spreading across. Discussing with the leadership, the President of Vien Dong Pharmaceutical affirmed that the crisis would last for long and he defined that if they did not have a reasonable and rapid cut down, they would not be able to resist. A message was sent to the key leaders: “It is better to cut own hand than lose the life”.

He did exactly what he said, Mr. Dung met the banks to ask to withdraw loan applications for the projects, which made the banks surprised because they did have capital, and Vien Dong Pharmaceutical was actually capable of borrowing.

At the same time, Vien Dong Pharmaceutical announced a policy of cutting down and posponding the implementation in 5 major fields: cut down personnel in inefficient divisions, supporting divisions, back-up units which is spending human resource; immediately stop inefficient projects, even projects which are promissory but can not be operated in short term, such as Lili  of France factory, or a Company with function of technology transferring which was expected to be located in Marseille (France), etc.

Even, he and his wife decided to “cut down” right in their family: the small child who was pupil at a VIP international school was brought to learn at the home school, so as to be convinient for lifting and which is the preparation for giving him to his grand parents, “preventing the crisis”

He was so decisive because as he defined, this was a really a challenge, even that Vien Dong Pharmaceutical might “early die”, but this was also the only chance in the Company development history as well as in his life.

Directly “enter the battlefield”

In the period of difficuty and tenderness, it is necessary to make the quick and reasonable decisions and make shorter of these decisions than usual. Receiving these responsibilities, Mr. Dung has decided to directly “enter the battlefield”. He stops keeping the position of Chairman of Board of Management to be the Executive Director of all the country to directly deal with the situations with the most quickness and decisiveness.

Though it is confirmed that Vien Dong Phamarceutical Joint Stock Company is in the face of incomparable chance of the company as well as of itself, the most difficult is that there are not so many people who have the same thoughts as Mr. Dung’s. “I think, Vien Dong Phamarceutical JSC is either in succession or in great distress, even in bankrupcy; then, the successful opportunity is 10%, 50% possibly grow; the risk of bankrupcy is nearly 40%. Many people dissuade me. A group of leaders of the comapny has left their positions with the wish that the company in the safest condition. I talked to them, it is not the safest condition at the moment because the more the company shrinks, the more belief the company loss in the thought of investors, banks and partners; and in the end, the greatest losses is the resources for development. It is necessary to bolster the confidence, “to dispose the troops in battle formation” and seize the resources for development. I choose and persuade them to take 10% of very little opportunity” – Mr. Dung reminded.

Still by the decisiveness, he deployed the “10% part” selected. While announcing “5 peremtory reduction”, he silently carried out “2 positive growth”, the way he called the “wartime” business policy.

One of the two growths of the company is to maximumly increase the cost for sales and salesperson, take advantage of withdrawal and expense reduction for sales due to recession of many companies.

More than 20 new original products launched the market, the expenditure for sales promotion of key products increased from 7% to 15%, for new products more than 25%, as the result, these products have well-scooped the market. As the products of other companies deployed sales back, the key products of Vien Dong Phamaceutical JSC has been stable in the market and available for new development afterwards.

 “ Our market penetration increase up to 30% in nearly a year while it takes at least 3 years at the ordinary condition. This chance is not in the “peace”! Instead of investing capital in other fields to gain the “hot” profit under the form of skimming and in short-term, we have found the right direction for development even in the condition of reduction” – Mr . Dung cheers.

Step to 2009, as scooping the market and marking the new products, Mr. Dung prompl “return” the policy into the condition of “peace”, thus, the company has gained the impressive growth in 2009 with the revenue up to 936 billion VND, the profit up to nearly 112 billion VND (the net profit in 2008 is at 25 billion VND).

At the same time, the project of Lili of France has been restarted with the bigger size, from the 250 billion VND - estimated investment for the area-scale factory, it is increased to 450 billion VND to form an European-standard factory.

By the own stable and potential foundation, at the year of 2009, Vien Dong phamarceutical JSC officially joins the securities floor with code DVD, and quickly selected by investors, there are more potential partners and Mr. Dung straightly enter the list of 100 richest people on the securities floor – according to the survey of a newapaper, with the 60th position and he is also the only representative of phamarceutical branch in this list.

Remind this, he smiles and relates, he was at the airport that day, a staff called and informed him to be “at” somewhere. Hearing vaguely, he asked again: “I was at the airport, you said where I was at?”

In fact, I pay no much attention to this, it is important that if I would be able to carry out my schedules and following passion or not” – he shares. 

Looking at the reduced details, the second policy of “increase” that Vien Dong phamarceutical JSC has carried out is an exception. That is the intensive investment, keep following the scientific works which are not urgent, Mr Dung still has determination to maintain even in case of difficulty.

I joke that if “something happens”, Vien Dong phamarceutical JSC shall return to be equal to the sudden scientific works. Factfully, however, we have determination to do this because of our many-years dream that Vietnam phamarceutical branch shall be entered into the new chapter in history – Mr. Dung confides.

Not many people know that, Vien Dong phamarceutical JSC has owned a team of young and talented scientists, ever studied and attend courses abroad such as America, Korea, and big Institutes of research in Vietnam collaborated as the role of consultants for projects. They silently followed the phamarceutical works with deep research such as the projects of general pharmaceutical chemistry, new active substance research, new form of cell with high technology, etc.

The exclusive and considerable value products such as medicine Fludon H1 for AH1N1 treatment, sleeping pill Sesen or HIV testing-stick through saliva, etc. estimated to introduction into the market to “rouse” the phamarceutical market in 2010 shall be the initial results of this research progress.

Interestingly but not suddenly to know that, all 5 consultants have appointed in turn to be the senior managment positions of the Group, to have responsibility and keep carrying out their works.  Mr. Dung scarely sees this behavior for these scientists. According to Mr. Dung, as the individual desire (the scientists) and the purpose of team (the company) to be in a point, it is to raise the rank of Vietnam phamarceutical branch, the rest is to make them feel secure to work.

He invests in the most modern facilities, creates the most confortable mechanism, for instance, the special works or subjects, they are possible to directly exchange with the Chairman of Board of Management; he also decides to sign 10-year working contract and make 5-year salary payment, accompany with reasonable adjusted commitment, etc.

I said to the scientists who are consultants to the Company that, if we only set out a hope to have a Vien Dong Pharmaceutical leading in Vietnam pharmaceu sector, I would not ivite you. What I desire is that you would combine with us to create a new page of history for pharmaceu sector. I myself can not turn this page of history, and that is you who do so. We would turn this page of history together with all our attempts, our lives so that the next generations acknowledge what their previous generation has done.

Until now, I think that hope, that chapter in history, we are ready to open at any time, just the moment we “show our hand”. It may the occasion of greeting Thang Long 1000 years!” Mr. Dung reveals.

Huy Kien

According to Investment Newspaper, volume of  Canh Dan Tet holiday, 2010